Proposed Grayson Repowering Project

What is Repowering?

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Repowering is a common term among electric utilities that refers to rebuilding power plants by taking an old generating unit out of commission, dismantling it, and building a new, modern one at the same plant. The repowered units are more energy efficient, create less emissions, and increase reliability of the power grid. 

The City of Glendale, Department of Water and Power is proposing to repower the Grayson Power Plant located in an industrial area of the City of Glendale.  A majority of the facilities located at the Grayson Power Plant, were completed between 1941 and 1977, and are proposed to be replaced with more reliable, efficient, flexible, and cleaner units.  

Proposed Project

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The Project site is located in an industrial area of the City of Glendale at 800 Air Way, Glendale, CA 91201, just northeast of the Interstate 5 and Highway 134 interchange.  The site is bounded to the south by the Verdugo Wash and Highway 134, to the west by the Los Angeles River and Interstate 5, to the north by commercial properties and to the east by commercial and residential properties. The site is currently used as the Grayson Power Plant. The Grayson Repowering Project would be located entirely within the existing Grayson Power Plant, an operating power plant. 

History

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The Grayson Power Plant, named after the City's first Chief Engineer and General Manager Loren Grayson, has been faithfully serving the electrical power needs of the City of Glendale since 1941. Prior to 1937, the City purchased all of its electrical power from the Pacific Light and Power Company (today known as Southern California Edison). That same year after evaluating the current and future electrical needs of the Glendale community, the City not only entered into an agreement to purchase hydroelectric power from the Hoover Dam Project but also made a decision to establish a City owned and operated steam powered electrical generating facility. Construction of the new facility began in 1939 and the first generating unit went into service in 1941. Since that time the facility has been expanded to meet the growing needs of the residents and businesses in the City and has proven to be an invaluable asset to both GWP and more importantly to their customers. However, over time due to age and normal degradation of the equipment, the reliability, efficiency and cost effectiveness of the facility has steadily and continuously declined. Recognizing the tremendous benefit that locally generated power has provided our City and seeing the long term benefits that would be derived from replacing the existing units not only from an efficiency and cost perspective but also an environmental quality standpoint, the City has embarked on a process for the potential replacement/repowering of the existing facility.

Benefits

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The Grayson Repowering Project is necessary to meet current and future energy needs and to meet the Renewable Power Standards (RPS) mandate. The Grayson Repowering Project will achieve the following benefits: 

  • Maintain reliable service.
  • Keep rates affordable to Glendale ratepayers. 
  • Comply with state regulations regarding renewable energy supplies and greenhouse gas emissions.
  • Replace the aged, unreliable, inefficient, high maintenance steam boilers with new efficient and more environmentally responsible generation technologies. 
  • Provide a locally controlled source of generation to minimize the City’s reliance on importing power from remote generation locations.
  • Support water conservation efforts by eliminating the use of potable water for generation purposes.

Stay Connected

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Demolition

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The City is proposing to replace all the existing generation facilities and their related infrastructure, with the exception of Unit 9, by removing existing aboveground and belowground equipment, and facilities and building new generation facilities.  This includes demolishing the Grayson Power Plant Boiler Building, replacing Cooling Towers 1 through 5, and replacing the generation units, designated as Unit 8A and 8B/C. The existing generation facilities (with the exception of Unit 9) would be replaced with a combination of combined cycle and simple cycle gas turbine generation units. 

Notice of Preparation

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Initial Study

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Site Plan

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The primary objective of the Project is to replace the aged, inefficient, inflexible, and unreliable generation units at Grayson Power Plant with approximately 260 megawatt (MW) net modern power generation that is efficient, reliable, operationally flexible, and that can easily integrate into the City of Glendale’s power system. This Project would ensure system reliability, balance renewable imports, and meet the power needs of the City in the event that the importing capacity from external transmission lines is not available to serve its load. 

Before & After

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Calendar

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Upcoming Meetings

October 16, 2017
6:00 p.m.
Special Meeting of the Glendale Water & Power Commission on the Draft Environmental Impact Report

Location:
Glendale City Council Chambers
613 E. Broadway, 2nd Floor
Glendale, CA 91206

 

October 19, 2017
6:00 p.m.
Community Meeting about the Draft Environmental Impact Report

Location:
GWP Utility Operations Center Training Room
800 Air Way
Glendale, CA 91201


Past Meetings/Events

January 12, 2017
Scoping Meeting for the Environmental Impact Report

Location:
Giffith Manor Park
1551 Flower St.
Glendale, CA 91201


January 25, 2017
3:30 p.m. - 4:30 p.m.
Meeting with the Pelanconi Homeowners Association

Location:
Grayson Power Plant Training Room
800 Air Way
Glendale, CA 91202

 

February 21, 2017
12:00 p.m. - 1:00 p.m.
Meeting with the Chamber of Commerce

Location:
Chamber of Commerce Offices
701 N. Brand Blvd. Suite 120
Glendale, CA 91203

 

March 6, 2017

7:00 p.m. - 8:00 p.m.
Meeting with the Homeowners Coordinating Council

Location:
Verdugo Hills Council Boy Scouts of America
1325 Grandview Ave.
Glendale, CA 91202

 

Overview

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Overview

The City of Glendale, Department of Water and Power (City) is proposing to repower the Grayson Power Plant (Project), located in an industrial area of the City of Glendale at 800 Air Way, Glendale, California 91201, just northeast of the Interstate 5 and Highway 134 interchange.  A majority of the facilities located at the Grayson Power Plant, with the exception of Unit 9 (a simple cycle peaking plant built in 2003), were completed between 1941 and 1977, and are proposed to be replaced with more reliable, efficient, flexible, and cleaner units and related facilities and infrastructure.  The City is proposing to replace all the existing generation facilities, units, and their related infrastructure, with the exception of Unit 9, by removing existing aboveground and belowground equipment, and facilities and building new generation facilities.  This includes demolishing the Grayson Power Plant Boiler Building, replacing Cooling Towers 1 through 5, and replacing the generation units, designated as Unit 8A and 8B/C. The existing generation facilities (with the exception of Unit 9) would be replaced with a combination of combined cycle and simple cycle gas turbine generation units.

The Project would be located entirely within the existing Grayson Power Plant, an operating power plant. The site is bounded to the south by the Verdugo Wash and Highway 134, to the west by the Los Angeles River and Interstate 5, to the north by commercial properties, and to the east by commercial and residential properties. The approximate coordinates of the Project are 34° 09’ 19” N and 118° 16’ 42” W.


Purpose and Need

The proposed repowering of the Grayson Power Plant is necessary to meet current and future City energy needs and California Renewables Portfolio Standard (RPS) requirements. Pursuant with Senate Bill 350 that was signed into legislation in October 2015, the RPS requires retail sellers and publicly owned utilities including GWP to procure 50 percent of their electricity from eligible renewable energy resources by 2030. The City serves its power system load through a combination of renewable energy sources (both local and imports), non-renewable imports, and local generation.  The City system’s single largest contingency is nominally 100 megawatts (MW) based on imported power through the maximum City allocation on the 500 kilovolt (kV) Pacific Direct Current (DC) Intertie (Path 65).

In order to meet retail power load obligations, Glendale Water and Power (GWP) relies on a combination of both local and remote generation, as well as long-term power purchase agreements and spot market purchases from a variety of suppliers throughout the Western Electricity Coordination Council (WECC) territory, including the California Independent System Operator (CAISO).  Natural gas for generation is supplied by several sources, which include gas reserves in Wyoming, a pre-paid gas commodity contract, and the daily gas market.  Landfill gas for generation at Grayson is supplied via dedicated pipeline from the Scholl Canyon Landfill in the City of Glendale.  GWP also uses transmission and generation rights to take advantage of arbitrage opportunities and to transact with counterparties in the wholesale market. As a result of recent state mandates, GWP is becoming more involved in short and long-term markets for renewable energy and carbon allowances.  GWP operates within the Balancing Area of the Los Angeles Department of Water and Power.

In June 2015, GWP completed its Integrated Resource Plan (IRP) that identified 262 megawatts (MW) of local generation at the existing Grayson Power Plant site as the best option to meet regulatory requirements for reliability. GWP has proposed to repower the exisiting Grayson Power Plant on the existing plant Site. The Project would replace 238 MW of the existing capacity from the boiler units (Unit Nos. 3, 4, 5) and combined cycle units (Unit Nos. 1, 2, 8A and 8B/C) with more efficient generation. Unit No. 9 commissioned in 2003, would remain. The project would comprise two 50 MW simple cycle units and two 75 MW one-on-one combined cycle units. Unit size is limited so that minimum generation levels would closely match the City's internal generation needs under low system load conditions.The simple and combined cycle unit sizes are also strongly influenced by the City's intent to self-supply spinning and non-spinning reserve and to integrate future renewable resources to meet state regulatory requirements for increasing procurement of renewable energy resources.


The Proposed Biogas Generation Project

Landfill gas is considered a renewable energy resource. Currently this landfill gas is located at an existing Class III nonhazardous landfill that has been accepting waste since the 1960’s. This waste is naturally decomposing and producing landfill gas that includes methane, a greenhouse gas that is combustible and can be put to beneficial use. This will help the City of Glendale achieve the State of California mandate that every utility shall provide a certain portion of renewable energy to their electric generation portfolio. By converting landfill gas to renewable energy the City can receive 100% renewable credit for the energy produced. Currently, the City is blending the methane gas with natural gas to produce electricity at the existing Grayson Power Plant boilers. The City is only receiving 50% credit for the renewable energy produced because the landfill gas is blended with natural gas, which is not a renewable resource. The City will produce and receive 100% renewable credit by installing generation units that can directly burn the landfill gas at the project site. Combusting and producing electricity at the landfill site will enable the City of Glendale to decommission the approximately five-mile pipeline between the landfill site and the Grayson Power Plant.

Currently, the landfill gas is collected at a central location within the project site where it is compressed, liquids are removed, and the landfill gas is piped to the Grayson Power Plant via an underground dedicated pipeline approximately five-miles in length where it is blended with natural gas then used as fuel in the boilers to make steam to generate electricity for the City of Glendale. The Grayson Power Plant is being repowered and the new turbines cannot use the landfill gas as fuel. The landfill gas is constantly being produced at the landfill and there are only two options currently available: burn it in the air by flares or put the landfill gas to beneficial use by using it as fuel for the generation of renewable electricity.

For more information on the Proposed Biogas Renewable Generation Project click here.

Milestones

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RFP for an Integrated Resource Plan (IRP) consultant and an Owner's Engineer (OE) February 2014 Complete
Award Contract for an IRP consultant and OE August 2014 Complete
Develop and Complete an IRP June 2015 Complete
Decision Point: Determine ultimate configuration of Grayson Power Plant June 2015 Complete
Engineering for permitting and environmental assessments July 2015 - May 2018 In Progress
RFP process and selection of Bond Counsel and Financial Services Advisor February 2016 Complete

Decision Point: RFP for Power Island Equipment (PIE)

January 2016 Complete
Decision Point: Award a Limited Notice-to-Proceed (LNTP) Contract for PIE November 2016 Complete
RFQ for Engineering, Procurement, and Construction (EPC) contractors February 2017 Complete
Approval of a Project Labor Agreement (PLA) February 2017 Complete
RFP for an EPC contractor July 2017  
RFP for a Demolition contractor August 2017  
CEQA process complete and permits in place May 2018  
Decision Point: Approve Project, Proceed with Debt Issuance, and/or Award all Contracts May 2018  
Start of Demolition May 2018  
Start of Construction February 2019  
Start of Operations Summer 2021  

 

RFQ for EPC

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FAQ

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1. Why do we need to repower Grayson?

The majority of the units at the Grayson Power Plant were installed prior to 1977 and have exceeded their intended life cycle. These units are very inefficient, highly unreliable, and continue to incur excessive maintenance costs. The proposed repowering project will provide us the ability to modernize the power plant, provide a reliable and efficient source of power, and maintain local control in order to meet the city’s constant electrical needs. The proposed power plant will  meet current and future energy needs and will greatly contribute towards our effort to meet the State of California’s Renewable Energy Standard Mandate of having 50% or greater in renewable energy sources.


2. How much will the project cost and how will it affect the electric rates?

The estimated cost for the proposed project is $500 million. The final cost will not be determined until the detailed design and regulatory analyses are finalized. It would require the sale of bonds to finance the project. Although payment of the bonds will be included in the revenue requirements, there will be avoided costs that will offset the costs. For example, there will be avoided costs from transmission and other services that we have to purchase in order to provide reliable service and comply with mandatory requirements. A more detailed cost analysis is underway.


3. What does the project entail? Are you tearing down the entire Utility Operations Center?

The proposed project area includes demolishing the Grayson Power Plant Boiler Building which houses five generating units, replacing cooling towers, and replacing two generation units. Click here to view a map of the exact areas that will be upgraded. Click here for a model of the proposed Repowering Project Area with new facilities.


4. When are you going to start construction?

Click here to view the proposed schedule.


5. Will traffic be impacted on San Fernando Rd.?

We are completing a Traffic and Transportation study to identify how the proposed project may impact the traffic on or around San Fernando Road. Our plan is to use Fairmont Ave. to access the construction site through the Fairmont entrance area of the Utility Operations Center.


6. How much noise and dust can we expect from this construction?

We anticipate the timeline for the demolition and construction phases to be  approximately 26 months. Our contractors will be working within normal construction hours beginning work no earlier than 7:00 a.m. and completing work for the day before 4:00 p.m. Our contractors are aware that this is a mixed use area with residential and business customers and they will be required to meet City laws for construction times and will work within reasonable hours. All of the potential construction impacts have been included in the formal environmental review and the site will be monitored daily to ensure compliance with regulatory requirements including noise, dust mitigation, traffic flow, etc.


7. What will change with this new plant? What are the benefits?

The proposed repowering project will replace the 238 megawatts of outdated boiler units and the existing combined cycle units with 263 megawatts consisting of two (2) simple-cycle units and two (2) one-on-one combined cycle units. The proposed power plant will have solar panels and an area for the future development of a large Battery Energy Storage System similar to the small-scale battery system that we are installing near the Grandview Substation. The proposed project will:

  • Provide more reliable service by utilizing new, modern and more efficient equipment and maintain local control of our source of power generation and requiring less reliance on transmission services that may be curtailed at anytime.
  • Help control costs and keep rates affordable to Glendale ratepayers.
  • Increase our ability to import renewable resources at reasonable costs and help comply with state mandated regulations to meet minimum renewable energy requirements and to reduce the greenhouse gas footprint.
  • Provide a modernized power plant that is more efficient and with better monitoring and control technologies.
  • Support water conservation efforts by eliminating the use of potable water for generation purposes.

8. Will the new power plant meet all of the City's power needs or do we still need to purchase power from the outside?

The proposed plant will meet our existing and future demands if we are separated from our connection with the electric grid. We have contractual obligations from other resources including renewable energy sources that we still have to transmit to the City. We will rely less on purchasing real-time energy to meet our day-to-day supply to maintain reliability. GWP is divesting from the coal power plants by the end of 2017 from San Juan Power Plant and by 2025 from Intermountain Power Plant in Utah.

 

This site is updated regularly with the most up to date information.

EPC Contractor Short List

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The following are the EPC proposers that were selected to receive the Request For Proposals for the Proposed Grayson Repowering Project:

Haskell Corporation
Contact:
Joe Spink
801-939-3869
jspink@haskellcorp.com


Kiewit Power Constructors Co.
Contact:
Patrick Sparks
720-880-8221
patrick.sparks@kiewit.com


MasTec Power Corp.
Contact:
Michael DonMoyer
303-390-3066
michael.donmoyer@mastec.com


PSC Primoris - ARB, Inc.
Contact:
Phill Reed
949-454-7129
preed@prim.com

 

The EPC RFP is scheduled to be released in August, 2017.
 

 

 

 

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City of Glendale Water & Power

141 N. Glendale Avenue, Level 4

Glendale, California 91206

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